Cross–Generation Wealth Transfers
The elderly are now one of this country’s best-off population groups, largely because stock market values have surged and Social Security and Medicare benefits have been generous compared to contributions. But the latest projections show that it will be impossible to sustain these benefits for the future elderly at currently promised levels without hiking payroll taxes or diverting funds from the rest of the budget. Some suggest a possible offset: As baby boomers’ parents pass away, inherited wealth will add to boomers’ retirement resources.
Suggested citation: "Cross–Generation Wealth Transfers," Federal Reserve Bank of Cleveland, Economic Trends, no. 00-10, pp. 14, 10.01.2000.